The International Accounting Standards
Board (IASB) will not make further changes to IFRS without
completing proper due process, according to board member John
Hill.

Political pressure recently forced the IASB to make rapid
changes to IAS 39 and IFRS 7 without completing due process.

However, Hill said following the amendments, the board has heard
“loud and clear” from stakeholders, including financial statement
preparers, users, analysts and auditors that any future changes
must be made with proper due process and in co-ordination with the
US Financial Accounting Standards Board (FASB).

A prominent group of UK profession leaders recently warned that
it is important the IASB remain independent from political
interference and due process is followed.

Hill was speaking as chair of a joint IASB and FASB round table
held in London this month to help identify financial reporting
issues highlighted by the global financial crisis. Similar round
tables will be held in the US and Japan.

His comments follow requests from the EC that the IASB considers
rushing through further changes to IAS 39 in time for European
banks to prepare their end of year financial statements.

Following the London roundtable, Hill told the International
Accounting Bulletin
that the board will not know whether it
will make changes to IFRS in time for the year-end until after the
final round table has been held in Japan on 3 December.

If it is decided urgent changes are needed, due process will
still be followed.

He added that the IASB is “very fortunate” that FASB has
disrupted its own schedule to participate in the round tables to
ensure any changes are made in unison by the two boards.

More than 60 people participated in the London round table,
which ran over two sessions. Auditors, preparers, investors,
analysts, standard-setters and regulators were all represented and
came from as far as Australia and South Africa.

Key issues discussed included the triggers and accounting issues
related to impairment, and how and when to use fair value
measurement in an inactive market.

Carolyn Canham